Nestle Examining Offer for Mead Johnson, Claims Report

c062b4c0-7b16-4335-a45e-8976c428df32articleimage.jpg

19 Jan 2017 --- Nestlé is gearing up to bid for US infant formula and vitamin maker Mead Johnson, according to a report. There has been speculation that Mead Johnson, which makes Enfamil baby formula, could be a target for Nestlé for some time, as it would help it grow in Latin America and Asia.

The report of the possible bid, reported in US title StreetInsider.com, can’t be independently confirmed.

Nestlé and Mead Johnson did not respond to a request for comment from FoodIngredientsFirst.

The report claims that Credit Suisse is advising on the potential deal, which could be announced as early as March this year. It cites its source as an individual close to the deal.

Mead Johnson has an enterprise value of roughly $14.5 billion but it is unclear about the value of such a bid.

Mead Johnson, which was spun out of the pharmaceutical company Bristol-Myers Squibb in 2009, had previously been a target for Danone.

Mead Johnson, which makes over $4bn in annual sales, sells its products in North America, Europe, Latin America and Asia. 

The global retail market for infant formula is expected to reach over $80 billion by 2018. Nestlé, Mead Johnson and Danone are the three biggest players in the category.

Shares in Mead Johnson were up 5.3 percent to $75.25 while Nestlé shares were down 0.2 percent to 73.55 Swiss Francs ($72.5) this morning.

Last year, Nestlé appointed former chief of German healthcare Fresenius Ulf Mark Schneider as its new CEO in a surprise move.

The appointment led to speculation that Nestlé could pursue acquisitions in nutrition and medical foods and shift away from its traditional food and beverage business.

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Business News

Palm oil: The “political” fallout in wake of Iceland advert ban

15 Nov 2018 --- Palm oil is in the spotlight once again but this time it’s about a banned Christmas advert which has been deemed “too political” to be screened on TV. Originally a Greenpeace campaign video, the ad was taken on by UK retailer Iceland to shine a light on the environmental devastation caused by palm oil producers and features the story of a displaced orangutan.

Food Ingredients News

Givaudan: Untapped market exists for less sweet yet satisfying NPD

15 Nov 2018 --- Givaudan has launched a new approach to sugar reduction that delivers “fully satisfying, reduced-sugar products without added sweeteners.” The approach seeks to combine the use of a new proprietary sensory language, novel ingredients and an understanding of sweetness and satisfaction to deliver up to 50 percent reduction in sugar, while maintaining consumer preference. The sugar reduction challenge is about closing the gap and restoring the overall experience offered by “full sugar.” The move comes amid a more holistic approach from the leading supplier, as it increasingly looks beyond the concept of “flavor” alone towards a broader approach to overall “taste.”

Food Ingredients News

Transforming sustainability through AI: Olam International partners with Canvass Analytics

14 Nov 2018 --- Canvass Analytics Inc. has signed an agreement with Olam International to utilize Artificial Intelligence (AI) as part of its strategy to find innovative and sustainable solutions to meet the growing demand for food, feed, fiber and fuel. Canvass Analytics offers an Artificial Intelligence (AI) enabled predictive analytics platform for the industrial Internet of Things (IoT).

Food Ingredients News

Authenticity and experiences touted as key themes for craft F&B, Symrise initiative reveals

14 Nov 2018 --- Symrise has launched a new Craft eBook focusing on US craft food and beverages. Details on this initiative – including consumer research, interviews with experts, trend analysis, category interrogations and concept creations – are now available to food and beverage manufacturers globally. According to the initiative´s findings, millennials value authenticity and experiences, which often leads them toward artisan and craft food products.

Food Ingredients News

EU-Japan Economic Partnership Agreement: MEPs urged to ratify trade deal next month

14 Nov 2018 --- As the potential EU-Japan Economic Partnership Agreement (EPA) edges closer, Europe’s agri-food chain partners are joining forces to urge politicians to ratify the trade deal quickly. A number of trade bodies want EU producers to take full advantage of the new opportunities and tariff-free trading that would result from what would be the world’s largest open economic area.

More Articles